Kyle Bass: Investment Genius, or Investment Flop?

In 2008, According to Kyle Bass predicted the subprime mortgage crisis with seemingly supernatural accuracy, making him a superstar in the investment industry. His accurate prediction also earned him international recognition. However, time would make the financial world reconsider their view of Kyle Bass.

While making serval television appearances, and providing so-called “guidance”, Bass’s Dallas-based fund, Hayman Capital Management, continues to demonstrate a poor performance record. In addition to making some questionable investment choices, Bass also has made some questionable alliances. Cristina Fernandez de Kirchner has basically destroyed the economy of her country, Argentina. She is considered to be primarily responsible for her country defaulting on a debt for the second time within a thirteen-year period. However, Basses defense of Kirchner should come as no surprise. The BBC has stated that Bass has a good relationship with Kirchner and has continually defended her questionable economic policies. Bass has went as far as calling Paul Singer of Elliot Management “immoral” and that he and his organization were “holding poor countries as hostages” when New York Judge Thomas Griesa ruled that Argentina had to repay the creditor in full, unlike the other creditors that settled for smaller amounts.

And let’s not forget about his association with Eric Spangenberg. Together, Bass and Spangenberg would short-sell the stocks of certain pharmaceutical firms, then challenge one, or more, of the firms’ patents under the Coalition for Affordable Drugs, which had been established by Bass himself and resulting in a nice profit, for Bass.

The questionable acts of Kyle Bass don’t end there. In order to make good on his investments into General Motors, he went and tried to shift the blame of faulty airbags and power steering units onto the drivers of the vehicles, while on television; making accusations that the drivers had to have failed to wear their seatbelts, or had been drunk. I guess morality evades you when you are labeled a financial genius. It seems Kyle Bass has no moral issues when it comes to making a buck.

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